michael milken: Junk bonds and market cycles: Lessons for today's investors
The legacy of Michael Milken and his junk bonds continues to persist with today's US junk loan market standing at $1.4tn. The HYB market is currently experiencing a high default rate at 6%, coinciding with a surge of the Indian equity market with over 30% of listed companies experiencing gains of over 30% in just three months. Central bank's synchronised interest rate hikes can lead to the uncovering of hidden excesses, just as it did when interest rates reached 5% in 2005 before the Global Financial Crisis emerged. As investors, it is essential to remain aware of potential risks during market...
Source: indiatimes.com
